oswald co. purchased a manufacturing plant for the production of stuffed animals. oswald paid $300,000 cash…

oswald co. purchased a manufacturing plant for the production of stuffed animals. oswald paid $300,000 cash for the purchase of the building. oswalds purchase of the building will only affect\n\na. expenses\nb. assets\nc. retained earnings\nd. liabilities

oswald co. purchased a manufacturing plant for the production of stuffed animals. oswald paid $300,000 cash for the purchase of the building. oswalds purchase of the building will only affect\n\na. expenses\nb. assets\nc. retained earnings\nd. liabilities

Answer

Brief Explanations:

When a company purchases a building with cash, it is an asset - for - asset exchange. Cash (a current asset) decreases and the building (a non - current asset) increases. Expenses are costs related to the operations of the business over a period, retained earnings are accumulated profits, and liabilities are obligations of the company. This transaction only affects assets.

Answer:

B. Assets